Insurance & Reinsurance 2015
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ICLG The International Comparative Legal Guide to: Insurance & Reinsurance 2015 4th Edition A practical cross-border insight into insurance and reinsurance law Published by Global Legal Group, with contributions from: Acuña, Sahurie, Hoetz & Cifuentes CMS Advokatfirmaet Steenstrup Stordrange DA Creel, García-Cuéllar, Aiza y Enríquez, S.C. Advokatfirman Vinge KB DAC Beachcroft Colombia Abogados SAS AlixPartners DAC Beachcroft SLPU ALTENBURGER LTD legal + tax Gün + Partners Anderson Mōri & Tomotsune Kyriakides Georgopoulos Law Firm Arthur Cox McMillan LLP Attorneys at Law Borenius Ltd MJM Limited Bedell Cristin Guernsey Partnership Morton Fraser LLP Blaney McMurtry LLP Oppenhoff & Partner Rechtsanwälte Cabinet BOPS Steuerberater mbB Camilleri Preziosi Osterling Abogados Chalfin, Goldberg, Vainboim & Fichtner Studio Legale Giorgetti Advogados Associados Tuli & Co Clyde & Co LLP Willkie Farr & Gallagher LLP The International Comparative Legal Guide to: Insurance & Reinsurance 2015 General Chapters: 1 Proposed Changes to Insurance Contract Law in the UK – Jon Turnbull & Michelle Radom, Clyde & Co LLP 1 2 The Economics of Insurance Markets – Challenges and Change – Mat Hughes & Pablo Florian, Contributing Editors AlixPartners 7 Jon Turnbull & Geraldine 3 Recent Developments in Canadian Privacy Law and CGL Coverage – Lori D. Mountford & Quirk, Clyde & Co LLP David R. Mackenzie, Blaney McMurtry LLP 15 Head of Business Development 4 The New Corporate Governance Framework for Mexican Insurers – Leonel Pereznieto del Prado & Dror Levy Allan Galileo Olmedo Villegas, Creel, García-Cuéllar, Aiza y Enríquez, S.C. 21 Sales Director Florjan Osmani Commercial Director Country Question and Answer Chapters: Antony Dine 5 Bermuda MJM Limited: Jean-Paul (JP) Dyer & Timothy Frith 25 Account Directors Oliver Smith, Rory Smith 6 Brazil Chalfin, Goldberg, Vainboim & Fichtner Advogados Associados: Senior Account Manager Ilan Goldberg & Pedro Bacellar 31 Maria Lopez 7 Canada McMillan LLP: Carol Lyons & Lindsay Lorimer 38 Sales Support Manager 8 Chile Acuña, Sahurie, Hoetz & Cifuentes: Alejandro Acuña & Emilio Sahurie 47 Toni Hayward Senior Editor 9 Colombia DAC Beachcroft Colombia Abogados SAS: Gabriela Monroy Torres & Suzie Levy Camila de la Torre Blanche 52 Editor 10 England & Wales Clyde & Co LLP: Jon Turnbull & Geraldine Quirk 58 Rachel Williams 11 Finland Attorneys at Law Borenius Ltd: Ulla von Weissenberg 67 Group Consulting Editor Alan Falach 12 France Cabinet BOPS: Pascal Ormen & Alexis Valençon 72 Group Publisher 13 Germany Oppenhoff & Partner Rechtsanwälte Steuerberater mbB: Richard Firth Dr. Peter Etzbach, LL.M. 78 Published by 14 Greece Kyriakides Georgopoulos Law Firm: Konstantinos S. Issaias 84 Global Legal Group Ltd. 59 Tanner Street 15 Guernsey Bedell Cristin Guernsey Partnership: Mark Helyar 91 London SE1 3PL, UK Tel: +44 20 7367 0720 16 India Tuli & Co: Neeraj Tuli & Celia Jenkins 96 Fax: +44 20 7407 5255 Email: [email protected] 17 Ireland Arthur Cox: Elizabeth Bothwell & David O’Donohoe 102 URL: www.glgroup.co.uk 18 Italy Studio Legale Giorgetti: Avv. Alessandro P. Giorgetti 109 GLG Cover Design F&F Studio Design 19 Japan Anderson Mōri & Tomotsune: Tomoki Debari & Tomoyuki Tanaka 115 GLG Cover Image Source 20 Malta Camilleri Preziosi: Malcolm Falzon & Tara Cann Navarro 120 Colin/Wikimedia Commons 21 Mexico Creel, García-Cuéllar, Aiza y Enríquez, S.C.: Leonel Pereznieto del Prado 127 Printed by Ashford Colour Press Ltd 22 Norway Advokatfirmaet Steenstrup Stordrange DA: Klaus Henrik Wiese-Hansen & February 2015 Audun Kleppestø 132 Copyright © 2015 23 Peru Osterling Abogados: Enrique Ferrando Gamarra & Marco Rivera Noya 137 Global Legal Group Ltd. All rights reserved 24 Romania CMS Romania: Florentin Giurgea & Horia Draghici 142 No photocopying 25 Russia CMS Russia: Leonid Zubarev & Sergey Yuryev 148 ISBN 978-1-910083-33-8 26 Scotland Morton Fraser LLP: Jenny Dickson 154 ISSN 2048-6871 27 Spain DAC Beachcroft SLPU: José María Álvarez-Cienfuegos & Strategic Partners José María Pimentel 160 28 Sweden Advokatfirman Vinge KB: Fabian Ekeblad & Malin Van den Tempel 166 29 Switzerland ALTENBURGER LTD legal + tax: Melissa Gautschi & Julia Jung-Utzinger 173 30 Turkey Gün + Partners: Pelin Baysal & Bensu Aydin 179 31 Ukraine CMS Ukraine: Olexander Martinenko & Sergiy Gryshko 184 32 USA Willkie Farr & Gallagher LLP: Christopher J. St. Jeanos 189 Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. WWW.ICLG.CO.UK Chapter 29 Switzerland Melissa Gautschi ALTENBURGER LTD legal + tax Julia Jung-Utzinger 1 Regulatory 1.3 Are foreign insurers able to write business directly or must they write reinsurance of a domestic insurer? 1.1 Which government bodies/agencies regulate insurance (and reinsurance) companies? As a rule, foreign insurers carrying out insurance activities in or from Switzerland are subject to FINMA’s authorisation. An insurance activity is deemed to take place in Switzerland if a Swiss-domiciled The responsible regulatory authority in Switzerland is the Swiss individual or legal entity is the policyholder or the insured, or if the Financial Market Supervisory Authority (FINMA). It is in charge insured risk is located in Switzerland (section 1 para 1 ISO). of approving the establishment of (re)insurance companies as well as of their on-going prudential supervision. FINMA also has Exemptions apply to foreign incorporated insurers without statutory supervisory authority over various other financial market establishment in Switzerland that underwrite exclusively the participants, such as banks, securities dealers, collective investment following (direct) insurance risks: marine; aviation; cargo; and schemes and insurance intermediaries. war. For all other lines of business, foreign insurers are not able to write business directly (on a cross-border basis, i.e. without FINMA For social insurance (such as the compulsory health, accident, old authorisation), and may only write reinsurance of a domestic insurer. age, invalidity insurance, etc.), the responsible authority is the Provided that they only carry on reinsurance business in Switzerland, Federal Social Insurance Office. such foreign incorporated insurers are not subject to authorisation (irrespective of whether they are only operating on a cross-border 1.2 What are the requirements/procedures for setting up a basis or through a Swiss branch office; section 2 (2)(a) ISA). new insurance (or reinsurance) company? FINMA requires a domestic ceding (direct) insurer to retain a percentage of the risk it has underwritten, usually at least 10% of its The rules governing insurance supervision are set out in the overall risk exposure. Insurance Supervision Act (ISA) and the Insurance Supervision Ordinance (ISO). Pursuant to section 3 (1) ISA, an authorisation from FINMA is required in order to carry out insurance business 1.4 Are there any legal rules that restrict the parties’ in Switzerland (see question 1.3 below for exemptions). To this freedom of contract by implying extraneous terms end, a local physical presence needs to be established, which might into (all or some) contracts of insurance? consist of either a Swiss legal entity or a Swiss branch office of a foreign insurer. Both types of establishment require registration The parties’ freedom of contract is restricted by certain mandatory with the local commercial register, which takes two to three weeks legal rules that can be found either in general private and/or public from filing a complete application. law statutes (e.g. the Swiss Code of Obligations or the Federal Data Protection Act) or in statutes governing specific types of contracts, From a regulatory point of view, the company must submit an such as the Federal Insurance Contract Act (ICA). application to FINMA including a business plan setting out essentially: the type of business the company intends to write; The ICA, in particular, contains a number of provisions which cannot the proposed corporate structure and organisation of the company be overridden by contract, as, for instance, in relation to excess (including ownership, risk management, any outsourcing, etc.); its coverage and the replacement value (see full list in section 97 ICA). personnel (directors/managers, responsible actuary, etc.); as well Further provisions of the ICA are partially mandatory in the sense as its financial resources and technical reserves (minimum capital, that they may not be overridden to the detriment of the insured. Such organisation fund, solvency requirements, tied assets, financial clauses include the pre-contractual duty of information of the insurer, projections, investment policy, etc.) (section 4 (1-2) ISA). the consequences for the insured of a breach of duty of disclosure and of premium payment default as well as the duties of the insured in The application is based on various standard forms and is usually case of risk increase, etc. (see full list in section 98 ICA). submitted as a discussion draft following which FINMA